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Sports betting apps are becoming more popular despite India’s legislative ban on gambling and betting, which begs the issue of how they will be enforced. 19.4 lakh new copies of these applications were downloaded in India in 2023, with a notable increase in just the most recent quarter. In Q42023, 4.2 crore sports betting applications were downloaded globally, showing a rising trend.
In 2023, consumer expenditure on sports betting in India reached $121,000, a notable rise over prior years. It is also clear how popular fantasy sports are in India, since nine Indian companies are included among the top 10 most downloaded applications globally. The amount that consumers spent on fantasy sports increased dramatically, rising from $25,000 in 2022 to $120,000 in 2023.
Despite regulatory measures such as the imposition of a 20 percent GST on Real-Money Gaming (RMG), the gaming sector remains resilient. While the tax regime initially posed challenges, gaming enthusiasts continued to download and engage with gaming apps. India’s gaming segment has emerged as a formidable force in the Media & Entertainment sector, with significant revenue contributions.
The sector, which comprises online games and real money gaming, is expected to witness continued growth, reaching a value of Rs 38,800 crore by 2026, according to industry reports. However, the industry operates in a regulatory grey area, with no definitive laws governing online betting.
The online betting industry in India, estimated to be worth Rs 8,20,000 crore, operates amidst legal ambiguity. While traditional sports betting is banned, fantasy gaming apps operate under the guise of ‘games of skill.’ Despite this classification, the industry remains subject to various laws such as the Consumer Protection Act and the IT Act. The enforcement of regulations primarily falls under the jurisdiction of states, with no comprehensive federal legislation addressing online betting.
In December 2023, the central government banned 174 betting and gaming apps, highlighting ongoing efforts to regulate the industry. However, the lack of specific legislation leaves online betting in a regulatory grey area, posing challenges for both regulators and industry stakeholders.